Local government is inescapably involved in the local economy. In recent years, explicitly interventionist economic policies have been widely adopted. Local economic intervention is justified in that global market rationality may not coincide with spatial economic ratio:nality. 'yet much intervention has been wasteful and unproductive and the opportunity cost of many policies is illappreciated. Local government should concentrate on enterprises and ventures commensurate with its powers and resources. While local government's economic powers are everywhere limited, a strategy can amount to more than the sum of its parts. Apart from their basic infrastructure responsibilities, councils should concentrate on stimulating entreprenlzurship, building local economic networks and encouraging the sense of place which leads to a sen:ie of common interest.